Konvoy recently released its latest gaming industry report, which covers gaming financing in the last fiscal quarter – in this case, Q4 2024. According to Konvoy’s report, the gaming industry is expected to finish 2024 as a $188 billion industry, with a projected growth will probably be $223 billion by 2029. However, most of the report shows that there has not been much funding for gaming startups nor has there been an increase in mergers and acquisitions in this quarter.
One of the key findings from Konvoy’s report was that funding for games and gaming firms declined in the fourth quarter. According to the report, $286 million in enterprise capital was committed to gaming, marking the lowest funding quarter in over five years, with a 47% quarter-over-quarter decline. Most of this decline appears to be on account of growth stage financing. There were also 83 VC deals in the gaming industry, down 25% quarter-over-quarter, with a decline in the number of early-stage deals.
Konvoy also noted that the number of gaming startups moving from seed to Series A has declined. Only 11.5% of gaming startups that raised a seed round since the first quarter of 2018 passed a Series A round inside two years . This is lower than the 20-30% success rates of other startups. This number has also declined in recent years: the percentage of startups that raised seed funding as of Q4 2021 dropped to 4%.
In the report for the previous quarter, Konvoy noted an increase in funds going to gaming startups related to artificial intelligence. This number appears to have declined in Q4, with 10% of funds going to such startups in comparison with 22% in Q3. Other findings from the report show estimated Nintendo Switch sales in comparison with its competitors, PlayStation 5 and Xbox Series X/S; in addition to increased scrutiny of gambling firms regarding their child protection measures.
Konvoy’s complete gaming industry report includes regional information and is now available on the company’s website.
